BP to expand bioenergy ops with investment in Chinese SAF maker

Oil and gas major BP Plc (LON:BP) is stepping up its push into the bioenergy market with a bet on a unit of China-based Zhejiang Jiaao Environmental Protection Technology (SHA:603822) that is building a sustainable aviation fuel (SAF) plant capable of producing 500,000 tonnes of biofuel annually.

BP’s Chinese unit has agreed to invest CNY 353 million (USD 49.4m/EUR 44.4m) to acquire a 15% stake in biofuels maker Lianyungang Jiaao New Energy, a statement said on Friday. The transaction is subject to regulatory clearance.

The Chinese firm expects to launch the new facility in the first quarter of 2025. The site will produce SAF through hydroprocessed esters and fatty acids (HEFA) process.

In June, the British energy major agreed to buy out its Brazilian biofuels joint venture that is associated with a daily capacity of around 50,000 barrels of ethanol equivalent produced from sugarcane.

(CNY 1 = USD 0.140/EUR 0.126)

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